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Financial System – A Hubristic Swindle

Zeus punished the hubristic King Sisyphus to roll a huge boulder up a very steep hill in Hades. Before Sisyphus reached the top, the stone rolled down and he had to start all over again.

Hubris is serious sin that seldom goes unpunished. The arrogance and uber-confidence which TPTB (the powers that be) have displayed in leading the world to ruin will clearly be severely punished. But sadly the punishment will affect the whole world and not just the Elite that caused it.

BANKERS AND GOVERNMENTS HAVE INFLICTED INCREDIBLE DAMAGE

Manipulating The World... Martin Armstrong Check Amazon for Pricing. It could be argued that blaming one group for the coming global collapse might be unfair. The world economy has always oscillated between boom and bust and is thus a natural phenomenon like the seasons. But the main difference this time is the incredible damage that governments, central bankers and bankers have inflicted on the world.

In 2006 when the Great Financial Crisis started, US Federal debt was $8.5 trillion and today it is $26.5t. In 14 years debt has more than trebled. GDP in 2006 was $14t and is now $21.5t. So debt to GDP has gone from 60% to 123%.

This is what is called running on empty. US debt creation has nothing to do with investing in productive assets. With the debt to GDP ratio doubling in 14 years it is clear evidence that all the printed money is not going into the real economy but is supporting a bankrupt financial system which has kept the money to prop up their own insolvent balance sheets and to remunerate the top executives with fantasy money.

PRINTED MONEY TO FATTEN CORPORATE EXECUTIVES 1%. The book that the... Sharratt, Robert Best Price: $9.93 Buy New $8.99 (as of 02:53 UTC - Details)

The printed money has also gone to inefficient mega-corporations which have leveraged their balance sheets with total borrowings going from $3t in 2006 to $7t today. During the same period, US companies have spent in excess of $6t in share buybacks. So instead of investing in the business, companies have borrowed money in order to buy back their own shares with the purpose of inflating the share price and executive remuneration in options and stocks.

This is hubris of the highest degree. Ignore investing to grow the business. Instead leverage the company to the hilt to inflate the share price and compensation for the top echelon. Will this corporate arrogance go unpunished? The executives will hardly roll a big boulder up a hill in Hades but when the US and global economy collapses and social unrest spreads, the have-nots are not going to treat the haves kindly.

GLOBAL SAND CASTLE BUILT ON MMT

As I have stated many times, it is absolutely guaranteed that the global sand castle resting on worthless debt will crumble. Timing is always tricky and central banks have performed the most outstanding act of wizardry since 2006. Unleashing Usury: How ... Westra, Richard Best Price: $12.61 Buy New $24.95 (as of 03:15 UTC - Details)

By increasing global debt from $125t in 2006 to $270t today, they have drowned the world in so much worthless money that virtually nobody has understood that it is all fake money and fake wealth that has been created.

Actually, nobody understands it, not even Nobel prize winners who believe that MMT or Modern Money Theory is the solution to everything. You wonder how anybody can believe that creating money out of thin air can actually create wealth. But since so many have benefitted why worry. The Elite has become mega wealthy (measured in fake money) and the masses have a perceived improvement in living standards with more gadgets like cars or iPhones. What few realise is that it all comes from debt. Either increased personal debt or more government borrowing.

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